THE BUZZ
Hi [[autoname]],
Winter real estate is moving slowly as I expected. History again proves that December and January mark less activity, due to the holidays and inclement weather. Still, existing home sales for December 2009 nationwide were 15% above the December 2008 numbers. This rise in sales represents the first annual sales gain since 2005. For all of 2009, there were 5,156 existing home sales, which was 4.9% higher than the 4,913,000 transactions recorded in 2008.
The factors that continue to encourage positive growth in home sales include the following:
- Attractive mortgage rates.
- Expanded home buyer tax credits.
- Low inventory. (We are no longer in a buyer’s market but in a balanced market. If inventory goes lower, it will be a seller’s market.)
Lawrence Yun, NAR’s chief economist, predicts, “By early summer the overall market should benefit from more inventory, and the sales are on track to rise again in 2010. Job creation is key nationwide to a continued recovery in the second half of the year.”
With spring’s notoriously busier real estate activity around the corner, now may be a good time to consider a move. I would love to connect with you about your real estate goals for 2010.
Q: When buying your next home, is bigger still better?
A: Although two-story homes are still in demand, I’m seeing more and more listing descriptions that read like this – For Sale: SINGLE STORY HOME. The ease of living in a single story home is becoming increasingly appealing to a large number of buyers.
One group looking for single story homes is the 55-plus age group. These buyers represent 38% of all U.S. households and, by 2019, will represent 45%. Also, while the U.S. as a whole has about a 67% homeownership rate, the 55-plus group has an 80% rate.
But others also are seeking single story homes. Many 40–55 year old buyers are considering buying not for just the next seven to ten years, but for retirement as well. Traditions, memories, and financial security may motivate these buyers to stay put. Whatever their reason, when these buyers are looking for a long term or life-time purchase, bigger may not be better.
What’s your preference? Single story or two story? What meets your needs?
Supporting local businesses is good for many reasons. I want to have a corner pharmacy, a Saturday farmer’s market, a great pizza spot or takeout Chinese restaurant within minutes of my home. And if I don’t shop locally, one day I may just drive by and find that business gone.
What you may not realize is that supporting our local businesses is also good for your real estate values. These businesses create jobs. A community that is vital stimulates our local economy. And buyers want to live in communities like this.
So if you’re heading out with friends or family for dinner this month, check out websites like www.opentable.com to check out the menus of our local restaurants. You can also make a reservation online there. Another good place to search for local restaurants is www.zagat.com.
This February let’s celebrate our local community businesses and Valentine’s Day all month long.
Even though the overall sales numbers increased by almost 5% in 2009, there were still properties that dropped in value. It seems that some of our nation’s most expensive properties are not immune to the nationwide housing slump. For example, there is a 132-room mansion on the East Coast that is estimated by www.zillow.com to have dropped in value by 5.1%. Yet many may say it’s “priceless.”
What mansion am I talking about? Here’s a hint: 1600 Pennsylvania Avenue, Washington D.C. Designed by an Irish architect and built in 1792, this mansion stands at 55,000 square feet, is on 18 acres, has 16 bedrooms, 35 bathrooms, 3 elevators, 28 fireplaces and an underground bunker.
Ring a bell? It should because you “own” it. It’s the White House.